Different between Basic Salary & Base Salary
Basic Salary :-
The definition of annual basic salary is simply the value of monthly basic salary multiplied by twelve (x12) months to get annual rates of basic salary. This is simply the “pure” basic salary before any allowances, market pay premium, fixed or variable bonuses, or any other cash payments.
Base Salary :-
The definition of annual base salary is the value of “annual basic salary” (as defined) plus the annual value of any fixed or guaranteed bonus payments such as the following:
- Guaranteed 13th Month Fixed Payment (or even 14th or 15th Months)
- Fixed COLA (cost-of-living) Allowance or Cost-Of-Living Supplement
- Fixed Social Allowance
- Nature-of-Duty Allowance
- Market Pay Premium or Supplements
- Skills Premium
- Guaranteed Shift Pay
- Fixed Seasonal/Christmas/Eid/Vacation Bonus
These additional fixed pay elements are guaranteed and are not dependent upon hours worked, and are also not dependent upon individual/company performance.